The end of the Cold War has dramatically changed the threats that
defined the security policies and procedures for protecting our
government's information, facilities and people. While some
threats have been reduced, others have remained relatively stable
or have increased. Our understanding of the range of issues that
affect our national security continues to evolve. Economic issues
are of increasing concern and are competing with traditional
political and military issues for resources and attention.
Technologies, from those used to create weapons of mass
destruction to those that interconnect our computers, are evolving
and proliferating. With this greater diversity of threats, there
is wide recognition that the security policies, practices and
procedures developed during the Cold War must be reexamined and
changed. We require a new security process based on sound threat
analysis and risk management practices. A process which can adapt
our security policies, practices and procedures as the economic,
political and military challenges to our national interests
continue to evolve.

The Director of Central Intelligence and Secretary of Defense's
Joint Security Commission identified four principles which should
guide the formulation, evaluation and oversight of our security
policy:

--Our security policies and services must realistically match
the threats we face and must be sufficiently flexible to
facilitate change as the threats evolve.

--Our security policies and practices must be consistent and
enable us to allocate scarce resources effectively.

--Our security standards and procedures must result in the fair
and equitable treatment of all Americans upon whom we rely to
guard our nation's security.

--Our security policies, practices and procedures must provide
the security we need at a price we can afford.

The National Security Act of 1947, as amended, specified that it
is the duty of the National Security Council (NSC) to consider
policies on matters of common interest to the departments and
agencies of the Government concerned with the national security
and to make recommendations to the President in connection
therewith. Consistent with the National Security Act of 1947, I
direct the establishment of a new security policy structure, under
the direction of the NSC, for the coordination, formulation,
evaluation and oversight of security policy guided by the above
principles.

Nothing in this directive amends or changes the authorities and
responsibilities of the members of the Policy Board, including,
Director of Central Intelligence (DCI), Secretary of Defense,
Secretary of State, Secretary of Energy, Secretary of Commerce,
Attorney General, Director of the FBI, Chairman of the Nuclear
Regulatory Commission or Director of the Information Security
Oversight Office as contained in the National Security Act of
1947, other existing laws or Executive Orders.

I direct the following:

National Security Policy Coordination:

--The Joint Security Executive Committee established by the
Deputy Secretary of Defense and the Director of Central
Intelligence is designated the Security Policy Board and
directed to report to the President through the Assistant to
the President for National Security Affairs. The existing
national security countermeasures policy and coordination
structure, the National Advisory Group for Security
Countermeasures, is hereby abolished and its functions
transferred to the Security Policy Board.

--The Security Policy Board will consist of the Director of
Central Intelligence, the Deputy Secretary of Defense, Vice
Chairman of the Joint Chiefs of Staff, the Deputy Secretary
of State, the Under Secretary of Energy, the Deputy Secretary
of Commerce, the Deputy Attorney General, one Deputy
Secretary from another non-defense related agency and one
representative from the Office of Management and Budget and
the NSC staff. The additional non-defense agency
representative will be rotated on an annual basis and
selected by the non-defense agency members of the Security
Policy Forum established below. Senior representatives of
other Departments and Agencies will be invited members at
such times as the Security Policy Board considers security
issues germane to their responsibilities.

--The Chairman of the Security Policy Board will be designated
by the Assistant to the President for National Security
Affairs on behalf of the President.

--The Security Policy Board will consider, coordinate and
recommend for implementation to the President, through the
Assistant to the President for National Security Affairs,
policy directives for U.S. security policies, procedures and
practices. The Security Policy Board will be the principal
mechanism for reviewing and proposing to the NSC legislative
initiatives and executive orders pertaining to U.S. security
policy, procedures and practices that do not fall under the
statutory jurisdiction of the Secretary of State. This Board
will coordinate the development of interagency agreements and
resolve conflicts that may arise over the terms and
implementation of these agreements. In coordinating security
policy, procedures and practices, the Policy Board will
ensure that all U.S. Departments and Agencies affected by
such decisions are allowed to comment on such proposals.

--Policy disputes that cannot be resolved by this Board will be
forwarded to the Principals Committee of the National
Security Council.

--A Security Policy Advisory Board is established to serve as
an independent and non-governmental advisory body on U.S.
security policy. Five members, including a Chairman, will be
appointed by the President for terms of up to three years.
The Chairman will report annually to the President through
the Assistant to the President for National Security Affairs
on implementation of the four policy principles identified
above. The Security Policy Advisory Board will also provide
a non-governmental and public interest perspective on
security policy initiatives to the Security Policy Board and
the intelligence community.

The Security Policy Forum established under the Joint
Security Executive Committee is retained under the Security
Policy Board to consider security policy issues raised by its
members or any other means; develop security policy
initiatives and obtain Department and Agency comments on
these initiatives for the Policy Board; evaluate the
effectiveness of security policies; monitor and guide the
implementation of security policy to ensure coherence and
consistency; and oversee the application of security policies
to ensure that they are equitable and consistent with
national goals. Policy Forum membership will include one
senior representative from the Office off Secretary of
Defense, Joint Chiefs of Staff, each Military Department,
including the U.S. Coast Guard, Defense Intelligence Agency,
National Security Agency, Central Intelligence Agency,
Commerce, Energy, Justice, State, Treasury, Transportation,
Federal Bureau of Investigation, National Reconnaissance
Office, Federal Emergency Management Agency, General Services
Administration, Defense Information Systems Agency/National
Communications System, Office of Personnel Management,
Information Security Oversight Office, Nuclear Regulatory
Commission, NASA, Office of Management and Budget, and other
agencies representatives as invited by the Security Policy
Forum. The Chairman will be appointed by the Security Policy
Board Chairman.

The Security Policy Board and Forum may establish interagency
working groups as necessary to carry out their functions and
ensure interagency input and coordination of security policy,
procedures and practices.

The existing Department of State Overseas Security Policy
Group is hereby designated as, and its functions transferred
to, the Overseas Security Policy Board and directed to report
to the President through the Assistant to the President for
National Security Affairs. The Overseas Security Policy
Board will be Chaired by the Director of the Diplomatic
Security Service and its membership will consist of
representatives from the Department of State, Agency for
International Development, CIA, Defense Intelligence Agency,
FBI, Commerce, Justice, Treasury, Transportation, National
Security Agency, United States Information Agency, Peace
Corps, Federal Aviation Administration, Foreign Agricultural
Service and the DCI's Center for Security Evaluation, Office
of Management and Budget, NASA and Arms Control and
Disarmament Agency.

--The Overseas Security Policy Board will consider, develop,
coordinate and promote policies, standards and agreements on
overseas security operations, programs and projects which
affect all U.S. Government agencies under the authority of a
chief of mission abroad.

--The National Counterintelligence Policy Board established by
PDD-24, the Security Policy Board and the Overseas Security
Policy Board will coordinate as necessary on policy issues
that may be of mutual concern and each Board will implement
procedures for such coordination. Conflicts between these
Boards that cannot be resolved will be referred to the
Principals Committee of the National Security Council. The
Chairman of these Boards will meet at least on an annual
basis to review policy coordination.

--The Security Policy Board, Forum, and any interagency working
groups established by these bodies will be supported by a
Staff which will operate under the direction of the Security
Policy Board. This Staff will also provide administrative
and personnel support to the Security Policy Advisory Board
which will operate independently of other Staff functions and
personnel under the direction of the Chairman of this
Advisory Board. Staff personnel will be provided or funded
by the member agencies of the Security Policy Board.

Implementation

I hereby direct the Chairman of the Security Policy Board to
convene the first meeting of this Board within 30 days of his or
her appointment. The Chairman, with the assistance of all
Security Policy Board member agencies, will fully implement this
directive and forward a report on implementation to the Assistant
to the President for National Security Affairs by December 1,
1994. The Security Policy Board will determine and report on the
continued functioning or disposition of all security related
groups formerly functioning under the NAG/SCM structure
established under authority of its members. For those security
entities established by Presidential Directive, the Security
Policy Board will make recommendations as to their relationship to
the Board and their continued functions under this new policy
structure. The Security Policy Board will provide an annual
report to the President through the Assistant to the President for
National Security Affairs on the implementation of our security
policy principles identified by this directive.